Otkritie Financial is taking over mid-sized domestic lender Petrocommerce in a deal which involves a sizeable equity injection in the Russian banking and investment institution from diversified holding group IFD Kapital.

The Moscow-headquartered asset manager is selling new shares worth RUB 15.00 billion (USD 467.95 million) and representing almost a fifth of its enlarged capital to the Cyprus-incorporated oil and gas to mass media investor.

It will then use the proceeds from the equity dilution to acquire at least 95.0 per cent of Petrocommerce in a RUB 18.50 billion-deal which includes picking up the 79.3 per cent stake held by IFD Kapital and interests owned by other minority shareholders.

Otkritie claims to be one of Russia’s largest financial groups offering clients over 80 products and services, including commercial and investment banking, brokering and insurance.

The group employs almost 15,000 employees, is present in 52 domestic regions and has subsidiaries in New York, London and Cyprus, according to its website.

Established in 1992, Petrocommerce claims to be among the top 30 largest banks in Russia by assets, offering services to corporate, small and medium enterprises and individuals, among others.

The lender offers services such as rouble and currency deposits, money transfers, cards, safe boxes and other similar banking products.

It operates through Stavropolpromstroybank, Komiregionbank Ukhtabank and Bank Petrocommerce-Ukraine.

Petrocommerce is the strategic partner and the primary settlement bank of LUKOIL for its rouble flows, providing the major domestic oil group with settlement services, conversion operations, cash management functions as well as payroll projects.

According to the website, the group has a broad regional network comprising 99 offices, 18 branches, 1,404 automated teller machines and 9,594 point of service terminals.

Petrocommerce had total assets of RUB 221.90 billion as at 31st December 2012 (31st December 2011: RUB 199.70 billion) and booked a net profit of RUB 454.00 million in the financial year ended December 2012 (FY 2011: RUB 447.00 million).